[Presentation]
Ladies and gentlemen, and dear shareholders, I'm very pleased to have you at our combined ordinary and extraordinary AGM of Faurecia on this, the 31st of May 2021. I'd like to begin this AGM with two words: welcome and thank you. Welcome to the very large number of new shareholders who recently joined the group subsequent to the attribution of Faurecia shares by PSA Stellantis to their shareholders. This is a big step in the history of our group, and we are proud of what we achieved with PSA, which enabled Faurecia to become one of the top 10 original equipment manufacturers worldwide. This attribution has significantly increased the group's free float. It also improves the attractiveness of our profile in the financial markets and enables us to reassert our commercial strategy as an independent firm.
Because of this, the composition of our board of directors has been adjusted and adapted, and its independence reinforced, but I will elaborate on that later on. A new chapter is beginning in the group, and we are very happy to be able to share with you today the strategy that will enable Faurecia to be reinforced as the global reference in connected, personalized, and sustainable mobility. Welcome, as I said. Secondly, thank you. Thank you to all our employees who, despite the pandemic and an unprecedented economic situation, showed their determination, courage, their solidarity, and their agility. Faurecia and its management team reacted from the very onset of the pandemic by implementing a series of steps aimed at, first of all, protecting our employees, but also that consisted in safeguarding the group's cash situation.
During the second quarter of 2020, we successfully managed a rapid ramp-up of production while remaining very careful about how the pandemic was developing. I'd like to say thank you to all the stakeholders, and more particularly, to the group's employees whose involvement and whose work were nothing short of superb. My respectful and very moved thoughts also go out to the families of our employees who have left us, those who have suffered, and who sometimes continue to suffer during these very difficult times. In this very particular context that we've been experiencing for over a year now, the board of directors at its meeting of April 16th this year decided, in order to protect the health and safety of shareholders, but also of employees and the group's partners, the group decided exceptionally to hold this annual general shareholder meeting behind closed doors.
Thanks to the efforts put in by everybody, and of course, the accelerated vaccination campaign throughout the world, we sincerely hope this will be the last time, and that as of next year, we will meet once again in person in a much more friendly environment. Beside me, we have Patrick Koller, Chief Executive Officer and member of the board. To his left, Michel Favre, who is Chief Financial Officer, and to my right, Nolwenn Delaunay, who is head of legal affairs. Of this AGM behind closed doors, we have limited the number of speakers, and you'll see that we are actually quite far apart in order to comply with the various protective measures. We also have with us in the room the two tellers appointed by virtue of Article H of the decree dated April 10, 2020, as modified and extended, and who accepted this function.
I named Peugeot 1810, which is the entity that was created by the Peugeot family to hold the automotive shares of their group, represented today by Robert Peugeot and Amundi, represented by Stéphane Depierres. The directors of your company are following this AGM live, and the presentation made by our statutory auditors, which has been recorded, will be broadcast during this AGM. Ladies and gentlemen, the shareholders meeting is a very important moment in terms of sharing information and exchanging with shareholders, talking about results, the outlook and strategy, and the group's governance. Despite the current situation, we have decided that this AGM, which is the first since the attribution of shares held by PSA and then Stellantis, should be as interactive as possible. Your AGM is broadcast live and will also be available afterwards on our website in an investor space, which is very easy to navigate.
In order to foster dialogue with shareholders and over and beyond the legal arrangement regarding written questions, you can also raise questions throughout this shareholder meeting by clicking on the link that you will find on the dedicated page, or I should say the page that is dedicated to the AGM, which you will find on our website. We will answer these questions, which may possibly be grouped by team, depending on how numerous they are and depending on the amount of time we have at our disposal when we come to questions and answers. I would also like to thank the very numerous shareholders who voted remotely, particularly by electronic means using the Votaccess platform. We will now proceed with the formalities required to open this AGM by setting up the bureau.
To begin with, in compliance with the applicable arrangements, I will be chairing as Chairman of the Board of Directors. I'll be chairing this AGM. I will also be supported by Peugeot 1810, represented by Robert Peugeot, and Amundi, as represented by Stéphane Depierres, as tellers today. This bureau, thus constituted, has appointed Nolwenn Delaunay as secretary for today's annual general meeting. I'd also like to stress that this AGM has been convened in compliance with legal provisions. Prior notice was given in the Official Gazette, the BALO, dated April 23, 2021, and it was convened also in the Petites Affiches on May 10th, 2021. All documents that should be available to shareholders have been held at their disposal as required by law and in good time.
Faurecia has also sent documents requested of it in compliance with the various laws in force, and the documents for the bureau, which I can assure you I will not be reading in extenso, are available here in front of me. I would also like to remind you that under the ordinary part of the shareholder meeting, the shareholder meeting will only be able to vote if we have one-fifth of the shares with voting rights present or represented. Under the extraordinary part of the AGM, decisions will only be valid if one-quarter of all shares with voting rights are present or represented.
We checked the tally just a few minutes ago with the attendance sheet and found that shareholders having voted by correspondence, be it by post or by internet, or who have given proxies, arrive at a total number of 92,809,167 shares with voting rights, which is well in excess of a quarter of shares with voting rights. In fact, they amount to 68.87%, which is a lot. We have our quorum very comfortably, and today's AGM can duly conduct its business on the basis of our agenda. I hereby declare the AGM underway. The detailed agenda is to be found on pages 18 and 19 of the notice of the meeting, also found on our website. We will be covering the following areas in the course of the meeting.
First of all, the results for the financial period 2020, the outlook or prospectus for the group, governance and compensation, then a series of questions and answers. Before concluding, as is the case every year, with the results of the voting on resolutions. Patrick Koller, Michel Favre, Nolwenn Delaunay, and I will be presenting these different topics. I now call on Michel Favre, our CFO, to comment the results for financial 2020.
Thank you, Chairman. Good afternoon, ladies and gentlemen. I think the chairman has already explained that this was an extremely difficult year with a very sharp drop in volumes, particularly from March onwards. Our top priority was, of course, to ensure the safety of all our entities, all our sites to work in highly satisfactory conditions. The goal in the first quarter, first half year, I should say, was to protect our results and our staff.
As of the second half year, once the recovery became evident, we wanted to be sure that we would get back to where we were beforehand or even exceed performance beforehand, and that we would reinstate cash generation as soon as possible. Obviously, we were very conscious of liquidity. It was important to ensure liquidity, but I think it's a very self-explanatory figure. Available cash at the end of 2020 was actually higher than it was at the end of 2019. A very good indicator is the new order intake, which reached a record level despite the fact that this was a very disruptive year. The safety protocol concerned nearly 300 sites worldwide. This was set up very rapidly, within a fortnight, in fact, and it's the same everywhere. I think it's been recognized by the authorities as best in class.
We continue to audit this protocol regularly to ensure that our employees are perfectly safe, and our feedback from these same employees is very positive. I'm talking about 300 sites with the same level of protection. We also launched a large-scale mask production, particularly in Méru, north of Paris. Of course, we have provided as much support as we can to the local population in a very complex environment, as you'll understand. Now, this graph is self-explanatory. A complete collapse from the end of March. It was late February in China, but March, you'll remember, and it was the 15th of March, the whole of Europe dropped sharply, then the USA. We reached a very low level in April, which gradually picked up. We returned to volumes close to late 2019 as of September. The last quarter was almost identical to the last quarter of 2019.
We're talking about a drop in our level of business. In fact, -19.6%, that's EUR 3.5 billion below the same period last year before, which was very high. This was essentially in the second half year. Sales dropped to EUR 14.6 billion, down from EUR 17.8 billion. Negative effect of foreign currency because of the weakening of the renminbi and the dollar, and of course, a change in scope of consolidation through the acquisition of SAS. It's a 50% stake that we acquired. We already had 50%, and the SAS was integrated as of February 1, 2021. In terms of income, operating income, the impact of these EUR 3.5 billion was EUR 1.4 billion in operating income because full compensation only covered part of the cost. Of course, there were also volume impacts, so losses of opportunity, shall we say.
To counter this major impact, EUR 601 million in costs are slashed, and then EUR 145 million, that's a recurring EUR 145 million that we will find again in 2021. We hope to increase this cost saving in 2021 because we are targeting EUR 200 million by 2022. This is on the basis of 2019. EUR 65 million, these are one-off effects, they're non-recurring, if you prefer, particularly because of the mask production and, of course, the loss in China. Of course, operating income was a mere EUR 406 million, very close to 3% of sales. Well above what we expected in July, as we explained in our guidance.
As for net income, unfortunately, there are two components here, the fall-off in operating income that I just explained, an increase in restructuring costs, because given this crisis, we had to take a lot of necessary structural measures which are shoring up our cost reduction plan for EUR 145 million and EUR 200 million. When you're dealing with a crisis, the most important thing is to focus on cash. This was a very, very sharp crisis. Everything stopped all of a sudden on the 15th of March. The cash consumption was EUR 1.4 billion in the first half year, EUR 1.45 billion, I should say. We recovered all of that and arrived at plus EUR 6 million at the end of the year in cash generation.
Our expectations initially were over EUR 300 million. We have outperformed what we expected to be able to do, at least as of July 2020. In the second half year, we reduced our debt by EUR 906 million. We limited the debt by comparison with the EUR 2.5 billion. This was mainly because of the acquisitions we made, SAS or the end of our parent payments. We limited debt, our gearing of net debt to EBITDA to a factor of 1.9. Currently, the target is to get below 1.5. As I said recently, we're well on track to achieve this goal. As regards the structuring of our debt, we are still securing debt maturities. Once the market reopened, we issued debt of EUR 1 billion last July on very good terms. We continued in this quarter.
For the first time ever, we have issued a green bond, a very successful green bond for EUR 400 million. This is the first issue by an automotive manufacturer. This is the second by an automotive manufacturer. Only this year, we announced that we would extend our syndicated loan from EUR 1.2 billion-EUR 1.5 billion. Of course, it's also been deferred by five years. All our debt is over five years with bond redemption options, which will enable us to manage this maturity very successfully. As for the order intake, well, begin with a snapshot. This is customer perception. Of course, if our customers are not happy, they're not going to place orders. The whole series of indicators that enable us, one, to check what we receive, we have 4.2 out of five, a possible five, I should say.
The best measure of all, we've had 40 awards from our customers in the last year. Record intake of EUR 26 billion in 2020. We're giving the figures over three years. If you calculate 72 divided by 3 is 26. EUR 26 billion is an average over three years. Very successful with EUR 2.5 billion from Clarion Electronics, which shows the ramp-up of Clarion. We're not forgetting China, with over EUR 5 billion, one of our big success stories.
We have committed to repeating this performance in 2021.
Thank you, Michel. To summarize in 2020, improved agility and resilience. We were able to respond very quickly. We no longer had any references in terms of budget or compared to the previous year, so we worked in full through mode. It worked very well with our team who were immediately able to follow this new rule. Effective cash management, as Michel just explained, a record level of order intake, although the year was sometimes a bit choppy and in 2020, there were a number of delays and postponements that should be decided this year. On the hydrogen part, I think that post-COVID, we can see that the world is going to change. In particular, people are more worried about the climate, and it's now a worldwide phenomenon.
The hydrogen part has accelerated in line with this sentiment, and we've made major progress in terms of technological leadership. In a minute, I'm going to talk about the first production orders. An acceleration in our commitments for the climate. Here, we're talking also about CO2, in particular scope one and two, but also scope three, what regards design of our products. To put it simply, a stronger, agile, and fully committed group for the transformation of the automotive industry. 2021, as you can see on this figure on the right, this is our outlook for a return to 2017 levels, which was the maximum reached in terms of automotive production, 91.6 million. We may reach it before 2025. We were cautious for the year 2021.
We anticipated on the uncertainties related to the recovery, we set ourselves a goal in terms of volume of 76.6 million, whereas the latest estimate for IHS was around 79.2 million, I think. The latest figure was revised slightly downwards, especially because of the second quarter. The second quarter is difficult, in particular because of supply constraints for electronic components. The second quarter is expected by IHS to be at -7% compared to the first quarter. IHS still expects a rebound for the second half of the year, which should be significant and significantly higher than our assumptions. To give you an order of magnitude, IHS expects 3 million, even a bit more than 3 million extra vehicles compared to our assumptions. We should be decently positioned for the whole year.
I also think that these difficulties in electronic component supply are going to improve, although I don't think that the crisis is going to be solved this year. We should wait until H1 next year to be fully out of the difficulties related to install capacity. The global shortage is not the only event. There is also major inflation, especially on raw materials, steel, also plastics. We have mechanisms. We have agreements with our clients so that we can correctly manage this part, although we think that we are now moving into an inflationary phase, which is probably going to last for a few years, we should become organized and manage the company consequently. We published our first quarter figures. Michel Favre, if you would like to recall them.
First of all, sales growth to EUR 4 billion. Growth in our three traditional business groups, Seating, Interiors, and Clean Mobility, which are ranging between 11.7% and 13.6% for Seating. Lower growth for Clarion because Clarion had shortages of semiconductors, so they had to make trade-offs, but growth is going to accelerate over the year for Clarion. This overperformance is seen in all regions from 480 basis points to double digits, especially in China, where sales even exceeded those of the first quarter 2019. All this makes us even more confident about the overperformance that we've committed to of 600 basis points, so plus 6% compared to the expected volume growth for the year. The main contributor is, of course, going to be the Seating business, which is going to benefit from a lot of starts of production, especially in the second half.
We've also acquired a majority stake in the CLD company in China, which is a good complement to the hydrogen part, where we have significant investments in Europe. As Patrick said, 76.6 million vehicles, that was considered very conservative, and I think it's still conservative compared to IHS. We can still think that we'll at least deliver on that figure at the global level. On that basis, we are repeating all of our guidance, plus EUR 16.5 billion in sales, plus 600 basis points in overperformance, operating margin around 7%, and EUR 500 million in cash flow generation. Cash flow generation this year will also help us reduce debt further and have leverage below, or even much below, 1.5x at the end of the year. With all this, we can pay out a dividend again.
We are proposing to pay out EUR 1 per share, and we clearly want to come back to steady dividend growth as it was the case between 2014 and 2019. I'll remind you of how management is considering to use cash. 40% for dividends and share buybacks to avoid dilutions because of performance shares, and 60% for deleveraging or bolt-on acquisitions. I'll give the floor back to Patrick Koller for new outlook.
Ladies and gentlemen, dear shareholders, we're now going to talk about the outlook, but first of all, let's watch a video.
[Presentation]
All right. Our industry has to manage several major transformations, some of which are familiar. Electrification, of course, we know what the end goal is, and there's a wide consensus about that. What we don't know is how to manage the transition phase. Electronic architecture is also a major transformation in the automotive industry with less electronics, but more algorithms and software, so more intelligence with a more centralized architecture, with more computing power, and also 5G connectivity and maybe 6G connectivity in the future to allow for very fast exchange of data with the cloud. This is not trivial. It requires a lot of changes. We'll need to consider the various functionalities of cars in a horizontal way. That requires state-of-the-art algorithms, and this is something that's going to happen at least until 2030 to be fully established, and then we'll see the benefits.
The circular economy, sustainable value, that's also essential. All of that is slightly connected, but I think that it's important to consider everything that starts with re, repair, recycle, and so on and so forth. That's what I'm talking about when I mention sustainable value. There's also another major possibility that customers want, which is to maintain the value of their car throughout its life cycle. Possibly it could be upgradeable. You could add functionalities and features, bring it back up to date. New organizations will need to come into existence to do that, and maybe also will need other transactional models. Last but not least, the environment, social, and governance. That's fundamental. The how and the why are more and more important. This is vital for us to recruit the talents that we need, and that on a worldwide basis.
I think that post-COVID, we're going to realize that these items are deeply rooted in people's minds, and they're absolutely fundamental for the new population, our new consumers and coworkers. Forvia, you won't be surprised, is focused on two areas of innovation, sustainable mobility with solutions for ultra-low emissions or zero emissions even. This is a potential market that grows by 9% per year between 2020 and 2030. The cockpit of the future with personalized and connected experiences for consumers. The potential market is expected to grow by 7% per annum over the same period, and that's a potential market of EUR 120 billion in 2030, so that's quite considerable. A targeted innovation strategy, a powerful ecosystem for quite a while. Very early on, we started thinking that collective intelligence was an asset, and so we built this ecosystem up.
You can see the partners that we have in various areas. They are prestigious partners. With them, we've learned, we've acquired very specific know-how in the way these ecosystems work, and in the way you can accelerate the time to market for our innovations. It's now less than two years between the moment we decide to work on and finance innovation, and the start of the first orders for production. EUR 607 million in innovation expenditure over the last three years, and expected CapEx of EUR 1.1 billion in sustainable technologies between this year and the year 2025. We've also created what we called a digital services factory, which is entirely focused on data and on artificial intelligence. These specialists help us reduce variability in our transactions, whether they are administrative or industrial, and they're also involved in the improvement of our products. An efficiency program in R&D.
This was twofold. The first one was the hour rate, to reduce the hour rate. The goal was to be below EUR 50 an hour in high-cost countries, which is now a given, and also the number of hours spent for applications. What I can tell you is that we're now on average at 22 months for all of our applications, whether they're seats, door panels, dashboards, and by the way, all of our projects. That's interesting because our clients are always on a 36-months timeframe. Now we need to have an effective stop-and-go system in place so that we can save money and then share that with our clients. We've invested in startups. There are only three listed here, but in reality, there are many more. We'll carry on investing. Each time, these are investments in technology.
We are not buying into these companies. We're entirely buying the startup, or we are creating an automotive JV for which we have exclusive rights. This also works very well. It's a new governance system because we've got entities in several countries, and we need to get them to work together. Once again, this is a new know-how that we're developing. Earlier, Michel talked about total customer satisfaction. In a world with so much uncertainty, it is absolutely essential to be close to your clients and customers and to have this constructive customer intimacy, as it's called. This plays out in two fields, measurable performance, and here we use the selected performance indicators for our clients. They vary depending on the clients.
They are mostly related to technology, to launches and the success of these launches, quality and delivered quality, compliance with deadlines, and everything that has to do with commercial services and after-sales. Also perception. After each of our meetings, clients have an application, and so they're able to assess the quality of the discussion, and so they use it to the full. They can write comments, which helps a lot because we can reply to that and have a constructive dialogue with them for a continuous improvement of our relationship. Listening to customers, responsiveness, quick problem-solving without a lot of debates and without trying first to apportion responsibilities and blame, but trying to solve things, and also the ease of collaboration. Is it easy to work with Forvia for an OEM?
Customer satisfaction is all the more important because, as you have understood, we always have negotiations with our clients about raw materials inflation and a number of data points that impact us, and for which it is legitimate for us to discuss it with them. Continuous increase in order intake. Here you can see what we've gained over the last four years. In actuality, we renew our revenues to the tune of 15%-20% every year, and you can see that when we're above EUR 26 billion, EUR 27 billion in 2022, and we can do better, well, this mechanically ensures that we can have EUR 24.5 billion or EUR 25 billion in expected sales. That's a lot of growth compared to the EUR 16.5 billion that we set in our guidance, as Michel showed you. How can we achieve that?
Well, with enriched content in each vehicle and in every one of our businesses. There are functions and features transfers from other elements of the automotive architecture to our modules. Strong growth on high-end vehicles, but also LCVs, light commercial vehicles, and electric vehicles. Strategic positioning in China, which will help us double our sales to reach EUR 5 billion in 2025. That's also the case in North America, where we are going to double our revenues in the same timeframe. At the latest CMD, we were able to offer a roadmap that runs until 2025, with revenues in 2022 higher than EUR 18.5 billion. Before the crisis in 2019, we suggested the same profitability, 8% in operating margin and 4% in cash as a ratio of sales, and EUR 24.5 billion in 2025.
This is the goal for 2025, higher than 8% operating margin and cash generation and net cash flow of 4.5% of sales. To achieve that, of course, we need to rely on performance and flawless execution. We need to offer the right products, especially products that are going to enrich our content per vehicle without increasing the sales price of the vehicle. This is very important, especially given the inflation related to electric vehicles. We need to be very careful about offering the right solutions, and we also need to ensure customer satisfaction. Here you've got a summary, the 2021 guidance, the 2022 goals, as I've just explained them. What's also interesting is the annual average over-performance by over 500 basis points between 2021 and 2025, as well as the net cumulative cash flow generation in excess of EUR 4 billion so that we can continuously deleverage ourselves.
I'm going to talk about those transformations that are happening. The first one is electrification. This is our hypothesis. In 2030, our hypothesis is that 30% of all vehicles will be zero-emissions vehicles. 67% will be electrified in one way or another, but 37% hybridization. This is a worldwide hypothesis, but for Europe, this 30% becomes 40%, so we're close to actually 50% by 2030. Powertrain electrification is clearly gathering pace. This also includes the 2% cars driven by fuel cells. These are light utility vehicles often. To these 2%, we need to add what we call heavy mobility. Our scenario, fast electrification scenario, has been confirmed in-house, and we are preparing for this. We are also a strategic partner for automakers in electrification. In 2020, 20% of our orders concerned electric vehicles. 20%. You have a handful of our international clients.
There's an American automaker who does not want its logo to be seen, but you can guess who that might be. As you can see, these are mainly rather larger vehicles, but a few utility vehicles as well. It's a highly diversified portfolio of customers. A few words about hydrogen now. Hydrogen is gaining ground throughout the world. At the end of last year, there were 228 projects that had been announced and funded. 25% of these projects concern mobility. If you look at where these projects are concentrated, in other words, mainly in Europe, over 50% of these projects are based in Europe. 30 countries have announced a hydrogen strategy, and that's a hydrogen strategy that is mainly for the purposes of energy sovereignty, but also because of CO2 emissions. Europe has announced $220 billion in funding by 2030.
Obviously, the cost of hydrogen is particularly important here, the cost of renewables is currently approximately EUR 20 per megawatt hour, which means that by 2030, we will have access to green hydrogen at between EUR 1.50 and EUR 3 per kilo, which is perfectly compatible with our applications. We feel that in 2030, the market will be a EUR 17 billion market. Here you have our hypothesis. 2 million vehicles, these are passenger and light commercial vehicles, will be hydrogen-powered out of a total of 200 million. It's out of 100 million, I should say. That's a total of 2%. In 2030, you see the costs. Costs will be related to storage units and stacks.
You also have a certain number of city buses and coaches increasing rapidly, a number of medium duty vehicles and heavy duty vehicles. It's through this heavy duty mobility that development of hydrogen will really take off. Light utility vehicles, light commercial vehicles are also very present. I think peri-urban areas are expanding, and this is one of the reasons why the mileage coverage is scheduled to increase. The double electric energy in batteries, of course, but also produced by hydrogen, is a very interesting solution that gives solutions all sorts of possibilities. To achieve those goals, there are a number of improvements that need to be made. First of all, we will have to industrialize this process. This will enable us to achieve scale savings, which are in the region of 70%-80% at present.
For fuel cells, we will have to improve the durability and energy density. In the case of storage, we need to improve, first of all, the security, safety, and the weight. We are striving to make these reservoirs connected to enable us to have real-time measurement of their resistance and life cycle, or at least a forecast life cycle. Our hypothesis is 500 commercial vehicles used up to now, maybe 2 million passenger vehicles with light commercial vehicles. The interesting thing is that these will be perfectly suited to what the Americans call light trucks, or rather large SUVs we might call them here in Europe. Which is a very substantial market, much bigger than our hypothesis. We have very strong sales ambitions. At a recent event, we explained that our objective in terms of order intake was EUR 500 million by 2025.
Our 2022 sales figure would be EUR 50 million, I should say, in this area, and in excess of EUR 2.5 billion by 2030. These are hydrogen solutions, and here you have the division between tanks and stacks. With Symbio, which is our joint venture alongside Michelin, we cover 85% of the whole value chain in hydrogen as applied to mobility. What is the current situation? Well, we have orders taken for over EUR 250 million. We continued our order intake just three weeks ago, and it's picked up very rapidly with a number of big names here. This is a really serious production. We are not talking about the smaller volumes outside of serious production. We're also looking at light commercial vehicles, buses, and heavy duty vehicles. On the right-hand side, you see our industrial rollout, which is gathering pace.
We have production plants in Asia, in Europe, and particularly in France, as well as in the U.S.A. This brings me to electronic architecture. I'm not going to go into the details of electronic architecture, but I will tell you what Clarion Electronics is doing and give you some information about our product lines. Our focus is in three areas, three lines of products. First of all, cockpit electronics, screens, displays, and related technology, and let's say, motoring assistance. Inside cockpit electronics, we have everything that concerns applications, for instance. For this purpose, we have a joint venture with Aptoide. Aptoide is the third biggest app store in the world, and means that we can make very interesting proposals to our clients. We're also working on the DMS and CMS sides of cockpit electronics. This concerns monitoring, safety monitoring, positive safety monitoring.
There's also a radar that gives a better understanding of what's actually happening inside the cockpit. There's radio and radio frequency side of cockpit electronics, noise reduction, and in particular, the noise level of electric vehicles are high frequency noises are much more difficult to filter than in the past. We have display technologies, where we have really created an ecosystem of smaller companies with very strong content, very important content, image enhancement, but also a reduction of electronic consumption. In this third area of what we call ADAS, which is advanced driver assistance systems, we're really looking at 360-degree vision all around the vehicle. Parking, automated parking, or even autonomous parking. Here, too, in the near future, rear view mirrors will also have what we call an eMirror display. This means that we'll be able to add in safety related functionalities. Right.
The order intake, EUR 2.5 billion by 2025. We're actually ahead of schedule because in 2029, we expected EUR 1.9 billion, which we achieved. In 2020, we anticipated EUR 2.1, we achieved EUR 2.5, and we're on track to be well ahead of the EUR 2.5 billion we targeted for this year. We're, as we say, on track to deliver this growth expectation. Displays, display technology. This is a EUR 6 billion market with very high growth in the region of an annual average 12%. Our target is to be in the top three by 2025 with sales of EUR 800 million again by 2025. This shows you what we are looking at. We're looking at multiple displays fully integrated into the dashboard.
This includes algorithmic systems, but also hardware, retro lighting or backlighting to ensure that we can provide the best quality of image and indeed, the best possible energy efficiency.
A simple example of that is that in the Chinese luxury car, the Hongqi, which means the red flag, by the way. Here we have multiple screens integrated right across the dashboard. That's 1.5 meter wide. This includes new optical interfacing technology between the windscreen and the active matrix of the screen. Touch-sensitive controls, confidentiality management. Depending on the angles of vision, you may or may not be able to see certain screens just to avoid distracting the driver, for instance. Screen integration in the rear with the curved screens, U-shaped curved screens. This is really 3D design. Now, we're not talking about a very small amount of volumes. We're looking at a vehicle that's produced in 100,000 units a year. This is the vehicles used for ministries and senior civil servants in China.
This car has replaced the former Audi A6, which was the most frequently used car by important dignitaries in China. This brings me to the circular economy. What are we doing in two areas? First of all, bio-sourced materials. Well, one particular idea of Faurecia is that we formulate materials, but we formulate them for particular transformations, industrial transformation. Our ability to immediately develop a material for a given application is something that chemists do not know how to do. Here's a very interesting business model because we believe that we can achieve over EUR 1 billion in sales by 2030 and over EUR 3 billion by 2030. We already have a number of patents, and these materials are produced in series. They enable us to reduce weight by up to 50%, which is very substantial.
Because these materials are bio-sourced, they are CO2 negative at - 11 grams per kilo, which is extremely interesting in our dealings with our clients. We have a video on this just to show you.
[Presentation]
We've decided to create a division that we call Sustainable Materials Division. These are bio-sourced or CO2 negative materials. We will be bringing all the groups' skills together in this division in order to accelerate for various formulations and sales. Moving on to seats. We obviously work on our materials too. There are no more materials of animal origin in our vehicles. A lot of clients are taking this decision, and I believe that this is a decision that will be generally accepted worldwide well before 2030. We need substitute materials, high-quality materials to replace them. Again, these materials will be a combination of bio-sourced materials, recycled materials, and coated materials that would be very pleasant to feel. Likewise with foams and plastics. The architecture will have to be very different. These seats will have an architecture that makes them easy to disassemble.
Easy to disassemble also means easy to assemble, which means that we'll be using modules or building by modular design, which will enable us to do our updating and continuous improvement throughout the life cycle of vehicles. The metal structure will also be changed. Less energy and more green energy for the production and transformation of steel and other materials. Continuous weight reduction and, of course, coating technologies enabling us to avoid thermal processing and to avoid anything that uses or burns up calories. 30% of CO2 savings by 2030. That's our first generation of seats. There'll be another generation before that, which will have even more CO2 reductions. Of course, in terms of weight saving, we want to achieve 15% weight saving by 2030. For all that, we have a small repair plant, electronics repair plant. This is something we also want to promote.
We are partners in this project, which is under the leadership of Renault. The goal is to reduce CO2 emissions by 85% through repairs. These are multi-brand experts. There are over 1,000 product references covered, 23 vehicle makes are covered, and we repair over 30,000 devices every year. This is something that could be increased. These are figures that could be improved upon, and in this current context of scarcity, I think this is a very interesting idea. Let's move on to the environment, social, and governance. Just before that, we have a short video on seats.
[Presentation]
Well, our ESG roadmap is a simple and clear roadmap. It's aligned with our expertise. For each block on this roadmap, you have an associated project with a dedicated team and goals, quantitative goals. If you look at the planet, this is the environmental footprint of all of our sites, and I'll come back to it. The circular economy, investment in sustainable technologies. For business, it's about business ethics, safety at work, and a sustainable supply chain. For our people, it's about employability, in particular, training, diversity and inclusiveness, and societal action. We think that we need to take action in the communities that host us. All that is integrated into the company's governance so that we can work in all areas simultaneously. Our approach in terms of CO2, we have one ambition, to be CO2 neutral with two key milestones.
One, by 2025, CO2 neutrality for our internal emissions, Scopes 1 and 2 . By 2030, CO2 neutrality for our controlled emissions. The difference between the whole of Scope 3 and controlled emissions in scope three is that at this stage, we're not taking into account the use by people of their vehicles. On three different streams, operations, eco design, as we've just seen a few examples, and offsets.
Capture of CO2 and processing of CO2. We are working with auditing companies that are internationally recognized, which allow us to justify the materiality of our goals and the quality of our goals. We are dealing with very concrete actions. We will eliminate 920,000 tons of CO2. You can see the reduction profile, we have two levers here. Consume less, saving, reducing electricity consumption, reducing calories used both for heating but also for heat treatment and all other industrial processes. Consuming better, consuming more renewable energies and equipping our plants with solar panels and wind turbines whenever possible, so that we can produce electricity. Not a very high ratio, maybe 10%-15% of our energy use, and also purchase of renewable energy.
Regarding scope three, which is much bigger in terms of size, to help us reduce by half, and that's everything that's within our control. What's missing on these figures is one thing, which is the increase in our CO2 footprint because of our growth, because I talked about EUR 17.5 billion in 2021 and EUR 25 billion in 2025. All of that is going to be offset. The reduction curves for CO2 are much steeper than what you can see on these figures. How do we achieve that? By consuming less, so reducing weight systematically at different architecture and modular packaging, better consumption also, so with manufacturing with greener processes, recycled content, the circular economy, and also, of course, biosourced materials. Of course, we set ourselves some goals in terms of inclusive culture. Here you can see a few examples. The engagement index for our employees up 12 percentage points.
This is a survey that we conduct every year. + 12 percentage points in 2020, we were very glad of that, because in a very different and difficult context with a lot of constraints related to COVID, well, you can see that our coworkers trusted us and proved that. In 2020, 33% of women recruited versus 26% in 2018. For managers and professionals, we now have 34% of non-Europeans. We had 19.2 hours of training per employee and per year. You can see the ambition for 2025, just two examples, women in manager and professional positions, 30%, and training hours, we want to raise it to 25 hours per employee and per year. The spin-off is now behind us. The spin-off was this process by which Stellantis would distribute Faurecia shares that it owned.
Here you can see our new share ownership structure, a different shareholding structure with a float that grew quite significantly because we went from roughly 60% - 85%. Now you can see our main shareholders, which agreed to freeze their ownership percentages at 5.5% for Exor, Peugeot 1810 3.2%, BPI 2.4%, and Dongfeng, a Chinese OEM, at 2.2%. I'm going to talk about the ESOP, which is going to increase the share of employees from 2% - 2.6% after our initiative. We thought that it was a major event for the company, this spin-off. It was necessary to let our employees benefit from that. We launched a non-dilutive plan via a share buyback program for a maximum amount of 2% of the issued share capital.
If 2% were subscribed, well, in that case, we would have reached a share ownership by Faurecia employees of 2.6%. Well, the fact is, via this plan, we reached 15 countries and 90% of employees, and the participation rate is higher than 22%. It's now closed. We are now in the price setting phase, and then we will deliver the shares in July. 22% is very good because we said that the best practice on the market was 16%. There is a significant oversubscription for the shares. In particular from five countries, which works very well, France, China, India, and Germany, and Japan. This is a very good addition to the engagement rate of our employees. Once again, I think it's a very positive sign, a sign of trust, but also a sign of strong involvement in the group's performance.
To conclude, our strategy is focused on the cockpit of the future and sustainable mobility. This doesn't change. These are the two mainstreams that we are going to focus our resources on. These two streams are going to enjoy strong, profitable, and sustainable growth. Our goals for 2022 are all confirmed. The annual average over-performance of sales is higher than 500 percentage basis points, sorry, over the period 2020-2025 to reach EUR 25 billion in sales in 2025, and cumulative net cash flow over EUR 4 billion by 2025. That's also confirmed. We are acquiring a unique position in zero emission hydrogen solutions. This will allow Forvia, with its partner, to become a leader in hydrogen mobility with sales in excess of EUR 3.5 billion by 2030. We also have strong values and beliefs that drive Forvia's initiatives.
These are real projects with strong involvement by the whole team worldwide, with one ambition, which is to reach carbon neutrality by 2030. The major change in Forvia's share ownership structure opens up new prospects for value creation and agility. This, ladies and gentlemen, was my presentation, and I will now give the floor back to Michel de Rosen for his part on governance and remunerations.
Thank you. Thank you very much, Patrick, for this insightful and very comprehensive presentation, which I'm sure will help our shareholders better understand Forvia's strategy, which is clear and aligned on the major trends of the automotive sector, as well as responsible. I'm now going to give you a presentation about issues of governance and remuneration. First of all, a few words about the composition of the board after the changes that have happened since the beginning of the year.
On 12 January 2021, we went from 15 to 12 members after the resignations of Grégoire Olivier, Olivia Larmaraud, and Philippe de Rovira. I'll remind you that the resignation of these three directors, who were appointed based on a proposal by PSA, was part of the commitments made by PSA and FCA for their merger operation. I would like to warmheartedly thank these excellent colleagues for their precious contribution to the work of the board and the committees that they were a part of. Besides, since the 18th of February 2021, we've reached the 13 members with the co-optation of a new independent director, Jean-Bernard Lévy. We were 15 minus three to 12, and then up one to 13. Our board is now more independent.
It now includes 13 members from seven different nationalities, including two administrators, two directors representing employees in compliance with the law, and five women, which is 46% of the board above the threshold set by the law. The changes that have happened in the makeup of the board have significantly strengthened its independence with nine independent directors, or 82% of the board, versus 61.5% at the end of 2019. In the current context of the health crisis, we also had more meetings than in previous fiscal years, 27 meetings for the board and its committees in 2020. The organization review and the review of resources used during the COVID-19 crisis kept our board very busy in 2020, as you can imagine. As I said, group management immediately responded very actively and rigorously, and the board was completely involved and informed about the impact of the crisis on your company.
Your Board is not just with the majority of independent directors, it's also multidisciplinary and complementary as part of its diversity policy and during its thinking, especially within the Governance Committee, about the composition of the Board. The Board can rely on a matrix of expertise, and it has identified a number of key and differentiating areas of expertise which seem necessary within the Board to better follow the development of the group. This expertise is mostly focused on the knowledge of relevant technologies and products for the group, knowledge of some key regions for Forvia, full control over CSR matters, and the requirement of being on the Board of listed companies. Of course, the Board is actively supported by its three standing specialized committees. These specialized committees play a major role in the preparation of the Board's proceedings. There are three committees, therefore.
The Audit Committee, chaired by Odile Desforges, which is in charge of financial, accounting, and risk-related matters. The Remuneration Committee chaired by Linda Hasenfratz, in charge of remuneration issues for corporate officers and management. The Governance, Nominations, and Sustainable Development Committee chaired by Jean-Bernard Lévy, which is in charge of matters related to governance, succession for corporate officers, and sustainable development. I remind you that we recently changed the name of this committee at the beginning of the year to better reflect the enlargement of its remit in terms of social and environmental responsibility. This enlargement of its remit, which has been effective since the last reorganization of committees that happened in 2019, was decided given the essential role of, as you heard Patrick Koller explain a minute ago, the essential role of sustainable development in your company strategy. Composition of the board.
You were asked for this general meeting to ratify the co-optation of Jean-Bernard Lévy as Director, to reappoint as Directors Patrick Koller, our CEO, but also Penelope Herscher and Valérie Landon, as well as appoint the company Peugeot 1810 as Director with Robert Peugeot as its permanent representative. I'm now going to talk about all five Directors. First of all, ratification of Jean-Bernard Lévy's co-optation as Director. This is resolution number five. The Board of Directors has decided, based on a recommendation from the Governance, Nominations, and Sustainable Development Committee, decided to become stronger by co-opting Jean-Bernard Lévy as independent Director. Since this date, he's also been the Chair of that self-same committee. Jean-Bernard Lévy is Chairman and CEO of EDF. Previously, he was CEO of two major French-listed companies, which is a unique background in France.
This experience as an executive manager, associated with his vision and his knowledge of industrial and strategic matters, strengthen expertise on the board in these areas. His knowledge of the energy sector is also valuable when you consider Forvia's commitment to new mobility, especially hydrogen, which is now at the heart of your company strategy. I will now let Jean-Bernard Lévy introduce himself. He would have wanted to do that physically before you, the conditions of this general meeting are not conducive to that. He, therefore, recorded the following message for you. Thank you, Jean-Bernard. He can't hear me except I think he's following online anyway. Thank you for that presentation. The sixth resolution concerns the renewal of Patrick Koller, our CFO, renewal of his term of office to the board of directors.
He is already a member of the board, there's no need for me to introduce him. I will, however, remind you that Patrick has been a Deputy CEO since the 1st of July and a member of the board since the 13th of May. Sorry, 30th of May 2017. I meet Patrick every day, I can see his very intense commitment, his involvement in the group as a CEO of your group. His contribution and his experience as an executive director are very important to the group and will play an important part in the balance we have on our board of directors. The seventh resolution concerns the re-election of Penelope Herscher.
Penelope Herscher is an independent director and member of the Governance, Nominations, and Sustainable Development Committee. Penny, who has dual British and American nationality, works and lives in Silicon Valley. She brings to the board her knowledge of this very active world, her expertise in digital, and her experience as a member of a number of listed and unlisted companies in the U.S.A. Penelope is what we call our Silicon Valley lady. If she is re-elected to the Board of Directors, Penny will also be renewed as a member of the Governance, Nominations, and Sustainable Development Committee. The eighth resolution concerns the re-election of Valérie Landon to the Board of Directors. Valérie Landon is an independent director and member of the Audit Committee.
Valérie, who has just taken over the chair of Credit Suisse in France and Belgium after acting as vice chair of investment banking and capital markets within this same bank, Credit Suisse. She is a specialist in banking and finance, as well as finance and investment, of course. Her contribution is particularly precious for the Board of Directors and indeed for the Audit Committee. If she is re-elected to the Board, Valérie would also be renewed as a member of the Audit Committee. The ninth resolution concerns the election of Peugeot 1810 to a seat on the Board of Directors. It's a re-election to the Board of Directors. Since the spin-off, Peugeot 1810, which is a Peugeot family company dedicated to automotive, has been a shareholder with a stake of 3.14% in our share capital.
As part of the Peugeot family's continued presence on our board and given the internal governance principles which generalize the representation of the Peugeot family by legal entities, we are asking you to appoint Peugeot 1810, the company, to the board of directors with Robert Peugeot as its representative. Robert Peugeot is a specialist in the automotive sector and indeed in the management of equity interests. He also brings to the board his experience in corporate governance as well as in finance and risk management. He is actually a member of our Audit Committee and became a member back on the 16th of April of this year. He will continue to sit on this board if Peugeot 1810 is elected to the board of directors. Robert Peugeot is here in person with us today in his capacity as a teller. He might like to say a few words.
Robert, would you like to say a few words about how the Peugeot family is represented?
Thank you, Michel. Thank you, Chairman. I'm very happy to go before the shareholders in order to have Peugeot 1810 and indeed myself as the family representative. In the family, we created this company, which brings together our equity holdings in the automotive sector, in Stellantis, of course, but also in Faurecia. For a very long time, I was in favor of the Faurecia spin-off, and I'm very happy to see that this spin-off has been successfully completed, indeed very well managed as soon as the shares were listed. I have extensive experience in the automotive sector. My whole career was with Peugeot PSA, and for nearly eight years, I was a member of the group's executive committee. I have experience of the automotive sector.
For almost 20 years now, I have been chairman and CEO of Peugeot Invest. I have a built-up knowledge of the world of investment and the management of equity interests because Peugeot has developed itself quite extensively over that period. This means that I am present to represent our company on a number of different boards of directors. Some may feel that this is maybe quite a few or maybe too many, but this is my full-time job, which I carry out as professionally as possible. There you have it, dear shareholders. That's what I wanted to say I can contribute to the Faurecia board of directors. As a long-standing shareholder, I'd also like to say that Peugeot 1810 has already publicly declared that it intends to maintain its stake and possibly even increase its stake in Faurecia.
Thank you, Robert. This increase in your stake, we will welcome it with great enthusiasm. Robert, maybe you could tell the shareholders a little bit more about the date in 1810. Maybe some people don't understand the 1810.
With the creation of Stellantis, the Peugeot S.A. name has disappeared. Our Peugeot name, which we own, was no longer present in the stock market. We decided to call FFP Peugeot Invest. Quite simply because this defines who we are, well, Peugeot and what we have, which is investments. One of the subsidiaries of Peugeot Invest, the one that the holding company for automotive shares is called Peugeot 1810, and this is because the first industrial company was set up by my ancestors in 1810. It was our first company.
Thank you, Robert. When we were children, we were told that Napoleon's daughter was born in 1810, that the King of Rome was born in 1810. Yes, it was also the first Peugeot company. The next topic is quite different. This is the compensation of the Chairman of our Board of Directors. We have two resolutions here. One concerning the compensation of the Chairman of the Board, called ex post. This is the say on pay, which concerns my compensation as Chairman of the Board for the financial period 2020. The second resolution is called the ex ante resolution, which concerns the compensation policy. One is what's behind us in 2020, and the second one concerns the policy on future pay. The total compensation attributed to me and paid to me as Chairman of the Board of Directors for financial 2020 was EUR 296,228.
This includes benefits in kind, including social protection. This amount includes the 20% reduction of my fixed compensation in the second quarter of 2020, a reduction that we decided because of the COVID-19 pandemic for myself and indeed for the Chief Executive Officer. Concerning the compensation policy, in addition to advantage benefits in kind and social protection, the fixed annual compensation is the only component of the Chairman of the Board's compensation. This fixed compensation has remained unchanged since 2017, and set at EUR 300,000 per year. The Chairman does not receive any other compensation, be it variable or exceptional, or any other compensation of any sort related to his situation or his functions, nor does he receive any compensation as a member of the board. The next topic concerns the compensation of our directors. Again, there are two sides to this, 2020 and the compensation policy.
In respect of 2020, the board members received a total of EUR 703,000. That's in total. This is a very slight increase over last year. It's an additional EUR 90,000, despite the fact that we had a very large number of meetings because of the COVID-19 pandemic. This is notably due to the fact that meetings were held largely by video conference, because of that, they did not give rise to any other additional compensation in lieu of the distance to be covered to attend board meetings when people or members of the board, should say, live quite far away. The compensation policy for our directors, this is resolution number 13, is based on the following general principles, which will remain unchanged by comparison with 2020. First of all, stability and durability. Secondly, fixed and variable compensation for participation on the board and specialized committees.
The variable component will be larger in compliance with market practices in France and in Europe. Additional compensation for board members who do not live in France, only if they attend board meetings in person, only if they travel. Finally, no compensation for the directors who are also executive directors. This brings me to the compensation of the CEO in respect of 2020. In fact, we have two resolutions concerning the compensation of our CEO, and both are put before you for approval. There's an ex post resolution concerning Patrick Koller's compensation as CEO in respect of 2020, and an ex ante resolution concerning the compensation policy for our CEO. Let's begin with his compensation in respect of 2020. As you all know, 2020 was particularly remarkable because of the COVID-19 pandemic. In fact, a significant part of the CEO's component is based on performance.
Overall, beyond the mechanical effects of the crisis on variable compensation, last year, our CEO made a number of significant commitments in order to make efforts as requested of everybody, of all stakeholders. He asked the board to postpone from 2020 - 2021 increases to his fixed compensation and his attribution of performance-based shares as approved at last year's AGM. He also reduced his fixed compensation by 20% for the entire second quarter of 2020. The overall compensation of our Chief Executive Officer was, because of these aggregate effects, significantly below the level of the previous financial period. His fixed compensation totaled EUR 855,000, which was below the EUR 900,000 he received in 2019. The variable component was EUR 270,000, down 79% on the variable component in 2019.
The objective for variable component, long-term that is, has remained at 180% of the basic fixed component rather than the 250% provided in 2020 because of the postponement proposed by the CEO himself and approved by the Board of Directors. I would like to underline the fact, to avoid any doubt whatsoever, that despite the very considerable impact of the crisis on the compensation of our Chief Executive Officer, the Board of Directors preferred not to make any adjustment or modification, not to amend compensation policy for 2020 in order for the CEO's compensation to be a good reflection of the impact of the crisis, as with all other stakeholders, and particularly the Group's shareholders and employees. I'd also like to stress that your CEO did not ask any favor or any derogation from the rules.
Concerning the broader impact of the crisis on the compensation system implemented by the company, and more specifically, performance-based shares attributed to the top 300 executives in the group, including our CEO. Concerning these, the Board of Directors has decided not to make any adjustment whatsoever to plan number 10. In respect of which performance was appraised at year-end 2020, none of the performance criteria were actually fulfilled, and out of which no shares will be issued in respect of this plan number 10. In other words, this plan took in water and remained under the watermark. Furthermore, the Board of Directors decided to mechanically adjust the quantitative objectives for plan number 11, which will be assessed at year-end 2021 in order to align them on the 2022 ambitions and the diversity objectives as revised. These are objectives that were recalled by particularly Michel Favre earlier on.
Let's now move on to the compensation policy for the CEO in 2021. The CEO's compensation policy changed significantly in 2020. In order to impose additional commitments on CEO, including a no compete clause and a six months notice, in exchange for which his annual fixed compensation will be increased, as would the ceiling for performance-based shares. Now, you approved these amendments by a very large score at the last AGM. That resolution was actually approved by 96.69% of you. As previously pointed out, given the COVID-19 pandemic, and in order to take part in the efforts request of the various stakeholders, the CEO decided to waive these increases in 2020 and asked that they be postponed to 2021.
The 2021 compensation policy will be a continuation of 2020 with, in particular, a fixed component of EUR 1 million, an amount which was decided back in 2020 in respect of 2020, but not applied because the CEO himself had requested that the benefit of this increase be postponed by a year. Furthermore, variable components which will remain stable at 180% maximum of the fixed component, and thirdly, a long-term variable component amounting to up to a maximum of 250% of the fixed component. This is an amount that was decided back in 2020, but not applied in respect of 2020, insofar as the CEO requested the benefit of this increase also be postponed.
The exceptional context in which Forvia shares were attributed has led your Board of Directors, after discussions with various investors and before this transaction was carried out, to introduce this year a non-recurring or exceptional plan for the Executive Committee, including the CEO, now known as an ESPI, the Executive Super Performance Initiative. ESPI. This initiative is intended to help retain members of the Executive Committee at a time when the stability of our team is essential. The purpose is being, first of all, to ensure the group's success, but also to implement the group's performance and growth strategy aimed at creating value in the long term in the greatest interest of all stakeholders. The Board of Directors has thus decided to opt for a duration of five years and a relative total shareholder return.
That's performance-based conditions which are different to those of recurring plans to again distinguish between the two mechanisms and their respective objectives. Just a few additional words about the characteristics of this particular initiative. Relative TSR, which is consistent with market practices, compensates long-term value creation and guarantees the alignment of the plan with the interests of shareholders. Secondly, the way the relative TSR is applied has been revised in order to take into account comments from certain shareholders, and they're explained in some detail on our website. Thirdly, performance will be assessed by measuring the position of the TSR as a percentile, again, in relation to the reference group for the same period. I'd also like to underscore the fact that, this is important for you shareholders, that the board has, at the CEO's request, ensured that these are demanding objectives.
Below the 50th percentile, no shares will be attributed in respect of a given year, and to obtain the full amount of potential shares, the 57th percentile would have to be achieved. As for the amount, the maximum amount of the attribution for each beneficiary shall not, at the date of attribution, represent more than 300%, and upon expiry of the five-year period, by the way, more than 300% of the fixed annual component with a cap of EUR 2 million. Which would be the case for the CEO, who could not therefore benefit from any more than 200% of his fixed annual compensation. The CEO's compensation policy that I've just described gives us, gives the shareholders visibility for the years to come and guarantees that we will be seeking out or seeking to create value.
Ladies and gentlemen, dear shareholders, this brings us the end of the part on governance and compensation. I now propose to listen to and in fact, to watch Grégory Derouet from Mazars, who will be speaking on behalf of the Statutory Auditors College to talk about his reports for today's AGM.
Ladies and gentlemen, dear shareholders, on behalf of the College of Auditors, Mazars, and Ernst & Young Audit, I am going to present the reports we prepared for your attention for the fiscal year 2020. We prepared eight reports for the general meeting. One audit report on the annual accounts of the Faurecia SE company, one audit report on the consolidated accounts of the Faurecia Group, one report on regulated agreements, and five reports on resolutions 17-25 in the extraordinary part of your general meeting. All these reports were made available to you by the company. The first three are included in the 2020 universal registration document. Our work was regularly presented to the management, the Audit Committee, as well as the Board of Directors of your group.
Finally, it was conducted and coordinated by your College of Statutory Auditors in all the group's significant entities, both in France and abroad. I propose not to read our report extensively, but rather to summarize the key points in the order of resolutions you'll be asked to vote on during this general meeting. Regarding our report on the annual accounts presented on page 165 of the 2020 universal registration document, the key audit matter relates to the valuation of participatory shares. We certify the annual accounts of the parent company unreservedly. Regarding our report on the group's consolidated accounts presented on page 133 of the 2020 universal registration document, our approach took account of your group's specificities, especially in terms of business and changes in scope, organization, accounting rules, and internal control systems in place.
Our due diligence was adapted to the specific conditions related to the COVID-19 pandemic, and key audit matters related to the consolidated accounts comprise the valuation of the recoverable amount of goodwill, the booking and valuation of the recoverable amount of development costs, and lastly, the recognition and recoverable character of deferred tax assets. For each of these key matters, we performed those procedures which we considered necessary. We specifically examined the main assumptions and estimates used by the management, and we made sure that the annexes to the consolidated accounts provided adequate information. We certify the group's consolidated accounts presented here unreservedly. Regarding our report on regulated agreements presented on page 284 of the 2020 universal registration document, we were not notified of any new convention authorized and signed during the past year to be submitted to your general meeting's approval.
For the extraordinary part of your general meeting, we issued reports on the following resolutions. Resolutions 17 - 21 on proposed delegations to the board of directors to issue various shares and securities without and/or with preferential subscription rights. Resolution 22 on the authorization to grant existing or future performance shares. Resolution 23 on the issuance of ordinary shares and/or various securities of the company reserved to members of the company savings plan. Resolution 24 on the issuance of securities without preferential subscription rights. Finally, Resolution 25 related to capital reduction. We have no observations to make regarding these operations, which comply with the provisions of the Code of Commerce. Ladies and gentlemen, dear shareholders, this was our summary of our reports issued for the fiscal year 2020. Thank you for your attention.
I would like to thank Grégory Derouet and the College of Statutory Auditors for this presentation. I'd like to commend them for their clarity and concision. The shorter, the better. We will now move on to the questions and answers session. I will ask Nolwenn Delaunay
To tell us whether there are any questions, and if so, what are they?
Thank you, Michel de Rosen. We did not receive any written questions as provided for by the Code of Commerce, but we made a platform available to our shareholders so that they could send written questions, including during this general meeting session. You can carry on sending questions. We've received two questions, which I'm going to read and distribute to my colleagues. The first one, maybe for Patrick Koller. When is there going to be a merger between Faurecia and Valeo?
Well, this option is not on the strategic priorities for the group.
Thank you, Patrick Koller. Second question for our Chief Financial Officer, Michel Favre, about the level of dividend. A EUR 1 dividend, is it enough? Maybe a EUR 2 dividend would have been better suited given that no dividends were paid out last year.
First of all, technically, we could pay more dividends because we have distributable reserves within the parent company. I'll remind you of the group policy, which asks for more visibility. Because of the spin-off, it was important to show a three-year, even a five-year plan until 2025. 40% of cash is dedicated to dividend payouts and share buybacks. If we'd paid more, we would have exceeded this threshold. I think that visibility matters. Secondly, as you saw earlier, we are committed to growing the dividend year after year.
Thank you for these answers, both very concise and clear. There are no further questions?
No further questions.
Ladies and gentlemen, dear shareholders, we'll now move on to the last part of this general meeting, where we're going to vote on the resolutions. You have already voted.
We'd like to thank you for that, and Nolwenn Delaunay will present the results of the vote.
Thank you, Michel. First of all, I'd like to remind you of the voting matters. The resolutions for the ordinary meeting should have a simple majority of votes by shareholders represented and who have voted by mail. 46,822,553 votes. For extraordinary resolutions, they should have two-thirds of the votes of shareholders represented and who have voted by mail. 62,430,070 votes. As the Chairman said, you can have the full text of resolutions in the convening brochure that was made available on the website of Faurecia. Given the specific way in which the general meeting takes place, votes were cast before the general meeting until 3:00 P.M. yesterday for votes cast by electronic votes.
I will now read each resolution and the result of the vote, starting with the first resolutions for the ordinary part of the meeting. The first resolution is about the approval of the parent company accounts. It is adopted with 99.44% of the votes. Resolution two about the approval of the consolidated accounts for FY 2020 is adopted with 99.96% of the votes. Resolution three about the appropriation of income and setting of the dividend, approved with 99.38% of the vote. Resolution four, related to the absence of new regulated agreements in 2020, adopted with over 99.99% of the vote. The following resolutions relate to governance and the mandate of some of our directors. Resolution five on the ratification of the co-optation of Jean-Bernard Lévy as director, adopted with 97.01% of the vote. Resolution six on the reappointment as director of Patrick Koller.
Resolution adopted with 99.76% of the vote. Resolution seven on the reappointment as director of Penelope Herscher, adopted with 94.60% of the vote. Resolution eight on the reappointment as director of Valérie Landon, adopted with 99.32% of the vote. Resolution nine regarding the appointment of the Peugeot 1810 company as director with Robert Peugeot as permanent representative, adopted with 65.72% of the vote. Resolution 10. I will now move on to the resolutions related to the remuneration of corporate officers and directors of the group with 10, about the information required by the Code of Commerce on remuneration of corporate officers, adopted with 97.65% of the vote. Resolution 11 on the ex-post vote on 2020 compensation for the chairman of the board, adopted with 99.98% of the vote. Resolution 12 related to the ex-post vote on the 2020 compensation for the CEO, adopted with 91.47% of the vote.
Resolution 13 about the remuneration policy for directors, adopted 99.95%. Resolution 14 about the remuneration policy for the Chairman of the Board of Directors, adopted with 99.98% of the votes. Resolution 15 on the remuneration policy for the Chief Executive Officer, adopted with 77.05% of the votes. Resolution 16, authorizing the Board of Directors to carry out share buybacks, adopted with 97.42% of the votes. Lastly, the last resolution for the ordinary general meeting, Resolution 28, powers for formalities, adopted with over 99.99% of the votes. Let's now move on to the resolutions for the extraordinary general meeting, starting with financial resolutions. Resolution 17 allows the Board to increase capital with preferential subscription rights. It is adopted with 97.56% of the vote. Resolution 18 allows the Board to carry out capital increases without preferential subscription rights via public offerings, adopted with 94.19% of the votes.
Resolution 19 allows the board to carry out capital increases without preferential rights with private placements, adopted with 90.74% of the votes. Resolution 20 authorizes to increase the amount of issuances provided for in the previous three resolutions in case of excess demand, adopted with 89.05% of the votes. Resolution 21 allows the board to issue securities to compensate contributions in kind made to the company without any preferential subscription rights, adopted with 98.02% of the vote. Number 22 allows the board to grant free performance shares to employees and corporate officers, adopted with 92.11% of the votes. Resolution 23 authorizes the company to issue securities reserved to employees without preferential rights, adopted with 94.62% of the votes. Resolution 24 allows the company to increase capital by reserving it to a category of beneficiaries without preferential subscription rights. It is adopted with 95.76% of the votes.
Resolution 25, the last financial resolution, allows the board to reduce capital by cancellation of shares, adopted with 99.60% of the votes. The last two resolutions will amend the articles of association. Number 26, to simplify the notification requirements for statutory threshold excesses, adopted with 97.56% of the vote. Resolution 27 brings our articles of association in compliance with the law about two things, compensation of directors and regulated agreements, adopted with 99.16% of the votes. All the resolutions were therefore adopted. I will now give the floor to our chairman to close this meeting.
Thank you, Nolwenn Delaunay, for reading the results. I'm sure that everyone listened intently. These are major resolutions which are going to shape the living conditions of the company for the next year until the next general meeting. These are major decisions.
Thank you, dear shareholders, first of all for taking part in the vote. Also for massively supporting the recommendations of the Board of Directors on these many different topics. If you'll allow me, ladies and gentlemen, dear shareholders, although we're not all together here in the same room today, in your behalf, I would like to thank the management, Patrick Koller, and his whole management team, and all the company's employees for the extraordinary work that they did in 2020 and which is still going on. There were challenges in 2020. There are new challenges in 2021. The energy with which the company is led by Patrick is always a matter of admiration for me. In this very solemn moment of the general meeting, on behalf of the shareholders, I would like to say congratulations and thank you to Patrick and his team.
There are no further items on the agenda. I will adjourn this meeting at 4:00 P.M. I think it's exactly 4:00 P.M. Sorry. I would also like to thank the technicians. You can't see them, ladies and gentlemen, dear shareholders. They're in the dark at the back of the room, but it's thanks to them that the general meeting could take place so smoothly. Thank you to everyone for your excellent work. Also our tellers, well, they seem to be satisfied with their work, yes. I'm looking at them. They haven't identified any reasons for concern.
See you all next week. We all hope that next time we're going to be in the same room and that we can look at each other in the eye and talk to each other directly, which we were not able to do, haven't been able to do in a long while.